The Experience Co Ltd (ASX: EXP) share price is climbing higher today. At the time of writing, shares in the tourism operator are trading for 28 cents – up 5.66%. By comparison, the S&P/ASX All Ordinaries Index (ASX: XAO) is 0.18% lower.
Today's price growth comes as the company announced its latest acquisitions.
Let's take a closer look at today's announcement and what it means for the Experience Co share price.
What's affecting the Experience Co share price?
In a statement to the ASX, Experience Co said it had acquired the business assets of Wild Bush Luxury and The Maria Island Walk. The company believes the purchases will allow it to expand into 'premium adventure'.
The purchase of Wild Bush Luxury will also see its founder, Charles Carlow, be in the employ of Experience Co. Wild Bush Luxury owns the Arkaba Walk and Homestead in the Flinders Range of South Australia and the Bamurru Plains in the Kakadu region of the Northern Territory. The Arkaba Homestead and Bamurru Plains are both members of Luxury Lodges of Australia.
The Maria Island Walk is located on its namesake, the Maria Island of Tasmania. Unlike Carlow, the founder of Maria Island Walk, Ian Johnstone, will not join Experience Co but rather retire.
In its statement, Experience Co said it believes its expansion into premium adventure will be fruitful in the short-term, as the COVID-19 pandemic subsides but international borders remain closed. If that is the case, it will be good news for the Experience Co share price.
Both purchases will be completed by June 2021 and cost $5.3 million, payable until April 2023. The purchase is being funded using existing cash reserves.
Experience Co CEO John O'Sullivan said of today's announcement:
During my time as Managing Director of Tourism Australia, I witnessed first-hand the increased demand by Australians and international visitors for our country's premium tourism experiences. We are delighted to welcome Wild Bush Luxury and The Maria Island Walk.
Wild Bush Luxury is an established business in a category with strong fundamentals and exciting growth potential that we look forward to extending to The Maria Island Walk. Domestic, nature-based tourism is going to be a key focus for our business into the future particularly in the near term with continued uncertainty on international borders.
I am delighted to be joining the Experience Co portfolio and working with the team to build out a premium adventure category through Wild Bush Luxury with a focus on conservation and nature-based experiences.
It is a great time to join Experience Co, with record booking levels ahead for the upcoming season and further opportunity when international markets open up. The shared values of a passion for adventure experiences, environmental sustainability and disciplined capital management are a natural fit and the right foundation to grow the business into the future.
Experience Co share price snapshot
Over the past 12 months, the Experience Co share price has increased 194.74%. Its current share price is only just below its 52-week record of 29 cents a share.
Experience Co has a market capitalisation of $152.8 million.